What is a Pawn Shop and How Do They Work?
A pawn shop is a broker that provides secured loans to those with items such as gold pawns, silver, jewelry, watches and other items that are held as collateral until the loan can be paid off. Interesting enough, the word pawn was derived from a Latin word that means to pledge an item. History reveals that some of the most ancient societies including China, Rome and other European countries participated in such activities.
When pawnbroker provides a loan, they set the policies and guidelines as to how long one has to purchase back their item for an amount that includes interest. Like any loan, the longer it takes for you to pay the pawn loan back, the more interest you pay.
There are many advantages to obtaining a loan from a pawn shop, including:
- The loan isn’t reported to credit agencies, if in the long run you can’t pay the pawn loan back. Instead, the broker will hold onto the item that you pawned and sell it to another customer or a reseller.
- You don’t have to go through a credit check to obtain to obtain the loan. Your pawned item is held for collateral in lieu of a credit check. So it doesn’t matter if you’ve recently been through a bankruptcy, foreclosed on a home or have poor credit.
- You aren’t at the whims of a bank or credit agency. Once an agreement is made, you have every opportunity to pay the loan off as soon as possible. And when you do, you will receive your item back. If you simply can’t afford to pay the loan off in the long run and your monetary conditions worsen for you,
Pawn shops Huntington Beach also buy and sell items. In the case of selling items to pawnbrokers or obtaining loans you want to make sure that you deal with someone you can trust and has your best interest at heart.
Pawn Shop Huntington Beach offers customized service for those looking to pawn or sell jewelry, watches, gold, silver, diamonds and other precious metals. We are dedicated to making sure that our customers get the most for the items they pawn or sell. We invite you to make an appointment at our Huntington Beach location. Call our dedicated team at 714-465-4950.